Bankrupt Woking Borough Council still has the highest debt per person in the country, new figures have shown.

A report released today by the BBC’s Shared Data Unit reveals Woking’s total borrowing stood at £2.16 billion at the end of 2024/25, up £52.4 million (2.5 percent) on the previous year. That equates to £20,601 for every man, woman and child – more than double the next highest, Spelthorne Borough Council at £10,252.

By comparison, the national average debt per person for local authorities across the UK is £1,791.

Woking’s borrowing levels spiralled under its previous Conservative administration, leading the council to declare bankruptcy in 2023. Since then it has begun selling off assets in a bid to reduce its burden.

The authority did not issue a formal statement about the new figures but instead referenced its Improvement and Recovery Plan.

While Woking remains the outlier, Surrey County Council has also seen borrowing soar. Its debt rose by almost 48 percent, rom £726.9 million in 2023/24 to £1.07 billion in 2024/25. That equates to £874 per resident, up £282 on the year before.

Council leader Cllr Tim Oliver said Surrey was facing the same pressures as authorities nationwide.

“Councils across the country are facing unprecedented financial challenges, and while here in Surrey we have a stable budget position, we are not immune to that pressure,” he said.

He added that demand and costs for social care, children’s services and roads were rising while funding fell, forcing the council to cut costs and transform services.

He also pointed to high interest rates driving up borrowing costs and said Surrey was holding short-term debt until conditions improved.

“Ultimately, we want to secure longer-term debt to match the investment made in assets and infrastructure, but current rates mean short-term debt is the most prudent course,” he said.

With Woking, Surrey and other councils facing restructuring, questions remain over who will inherit these liabilities if the Government refuses to write them off. Observers fear this could mean steep council tax rises or deep cuts to frontline services.

Across the UK, figures from the Ministry of Housing, Communities and Local Government (MHCLG) show councils collectively owed £122.2 billion as of April 2025 – £1,791 per resident. That is up 7 percent on £114.5 billion a year earlier.

Jonathan Carr-West, chief executive of the Local Government Information Unit, said the national picture of local government debt “should worry us a lot”.

He blamed spiralling costs of statutory services such as adult social care, children’s services and housing, combined with years of underfunding.

“We’ve created a system in which there is not enough money in the sector and in which councils have become reliant on their own ability to generate money, whether through local taxes or through return on investment,” he said.

Councils are permitted to borrow to fund projects such as schools, leisure centres and theatres, or to invest in commercial property.

But the sharp rise has been fuelled by a near tripling of short-term loans from central government.

An MHCLG spokesperson said: “While councils are responsible for managing their own budgets, we know that the current funding system is broken which is why we are taking decisive action so local leaders can deliver the public services their communities rely on.

“We have announced over £3.4 billion of new grant funding for local services on top of the £69 billion already made available this year to boost council finances, and we will go further to reform the funding system, including at new unitary councils, to ensure it is fit for the future.”